Norwegian Cruise Line Holdings Ltd (NCLH)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 910,257 | 549,236 | 420,172 | 342,852 | 166,178 | -209,817 | -851,079 | -1,446,516 | -2,269,909 | -3,360,149 | -3,910,640 | -4,119,108 | -4,506,584 | -3,672,797 | -3,504,278 | -3,501,732 | -4,012,512 | -3,152,282 | -2,024,332 | -1,068,899 |
| Total stockholders’ equity | US$ in thousands | 1,425,440 | 1,135,330 | 693,133 | 362,091 | 300,807 | 438,688 | 15,221 | -99,548 | 68,591 | 399,783 | 901,815 | 1,507,600 | 2,432,650 | 2,883,240 | 3,719,250 | 4,377,260 | 4,354,100 | 4,087,770 | 4,337,020 | 4,374,650 |
| ROE | 63.86% | 48.38% | 60.62% | 94.69% | 55.24% | -47.83% | -5,591.48% | — | -3,309.34% | -840.49% | -433.64% | -273.22% | -185.25% | -127.38% | -94.22% | -80.00% | -92.15% | -77.11% | -46.68% | -24.43% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $910,257K ÷ $1,425,440K
= 63.86%
Norwegian Cruise Line Holdings Ltd experienced a significant decline in return on equity (ROE) from March 2020 to December 2022, with ROE percentages ranging from -24.43% to -3,309.34%. This indicates that the company was facing challenges in generating profits relative to its shareholders' equity during this period.
The ROE continued to be negative in the subsequent periods until September 2023, indicating ongoing financial difficulties. However, there was a notable improvement in December 2023 when the ROE turned positive at 55.24%, demonstrating a positive return on equity for the first time in several quarters.
Subsequently, the ROE further increased to 94.69% in March 2024, signaling a significant improvement in the company's profitability and efficiency in generating returns from the shareholders' equity. This positive trend was maintained in the following quarters with ROE percentages in the range of 48.38% to 63.86% until December 2024.
Overall, Norwegian Cruise Line Holdings Ltd's return on equity exhibited a rollercoaster trajectory, characterized by a prolonged period of negative returns followed by a remarkable turnaround and sustained positive performance in the later quarters. This shift indicates the company's efforts to enhance operational efficiency, profitability, and shareholder value.
Peer comparison
Dec 31, 2024